For our Tuesday, June 20 worksession, I offer the specific questions (see below) related to the posted CodeNEXT topics. We may have the Travis County Appraisal District Chief Appraiser with us. Please post any related specific questions you may have as soon as possible so as to provide her and staff/consultants with sufficient time to prepare.

NOTE: We should also designate time this week (Tuesday or Wednesday) to have staff/consultants address the affordable housing and yield/density bonus section just posted.We also need to have staff address (on Tuesday or Wednesday): a) Adding an additional draft code/map to those currently planned;b) Address activity corridors, centers and nodes (outside of the central core) recognizing the need for them to also develop in a form envisioned by Imagine Austin and the anticipated increased housing yield that will develop in these locations.

June 20, 2017 Council Work Session 9-10:30 a.m.

Property valuations - How are single family property values determined by TCAD? - Does the property tax value change when zoning changes? When allowed uses change? When the yield (or allowed number of units) change?- Is an existing single family home property valued with reference to the sales price of a duplex?- If my neighbor builds a duplex or ADU, will that raise the tax value of my single family home?- If a vacant lot in my neighborhood goes up in value because it allows for greater yield (increased number of units), will that raise the tax value of my single family home? What happens to the total tax value of my single family home if its lot value goes up because of higher value sale of a vacant lot in my neighborhood?- Is a single family property with a homestead designation valued as a single family residence, even if other uses or more units could be built on the property? What about if it is surrounded by properties with other uses or more uses?- Are you seeing the ability to build an ADU or a duplex leading to increased values (and thus increased tax valuations)?- Do the sales price of new or renovated homes raise the tax value of old homes in that same neighborhood that are not newly built or renovated? What is the “segmented market” valuation?- Do you believe, or have you seen evidence that there is or is not a relationship between housing supply and market value?

Here are a few questions I have regarding property valuations for our CodeNEXT work session discussion tomorrow.

1. We’ve heard from residents who are worried about how CodeNEXT will affect their property values. I know in my district, staff has proposed changing a number of SF-3 properties to T4 – and some of these residents are concerned that this change will intensify market pressures on them, drive up their property values, and force them out of their homes.

My understanding is that state law requires TCAD to appraise residential homesteads by comparing them to other homesteads. Does this apply only to the structures or does it also include the land value as well? For instance, is there a possibility that changing a property from SF-3 to T4 could drive up a property’s land valuation relative to a comparable properties with T3 zoning?

2. We understand that TCAD values homes based on three variables: land value, market adjustment factor, and the replacement cost. We would like to understand the market adjustment factor more fully and what variables play into that.

3. We’ve also heard concerns from small business owners on Burnet Road and our various minor arterials about being valued in comparison to new, larger mixed-use developments that are nearby; and that the new transect zoning categories of T4 and T5 will further spur redevelopment and accelerate higher valuations on small business.

4. TCAD has employed a technique in some neighborhoods called “market segmentation” on homesteads that separates out newly constructed homes from older existing homes and values them separately. Will there be any kind of “market segmentation” for commercial properties on major corridors and/or minor arterials so that existing older small business properties will be valued in line with others of their kind in terms of improvements?

Colleagues,In addition to the questions posted, I am interested to know how the property valuations in West Campus may have changed in the years since the area was upzoned and many properties have been sold and redeveloped.